I 

112TH CONGRESS 

1ST SESSION H. R. 1611 

To amend the Internal Revenue Code of 1986 to provide for the designation 

of Clean Energy Business Zones and for tax incentives for the construction of, and employment at, energy-efficient buildings and clean energy 

facilities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2011 

Mr. GRIMM (for himself and Mr. BARTLETT) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for the designation of Clean Energy Business Zones and 

for tax incentives for the construction of, and employment at, energy-efficient buildings and clean energy facilities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Energy Business 

5 Zone Act of 2011’’ and as the ‘‘Clean Energy Empower6 ment Zone Act of 2011’’. 


smartinez on DSKB9S0YB1PROD with BILLS
2 

•HR 1611 IH

1 SEC. 2. DESIGNATION OF CLEAN ENERGY BUSINESS ZONES 

2 AND TAX INCENTIVES WITH RESPECT TO 

3 SUCH ZONES. 

4 (a) IN GENERAL.—Chapter 1 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subchapter: 

7 ‘‘Subchapter Z—Clean Energy Business Zones 

‘‘PART I. DESIGNATION. 

‘‘PART II. TAX BENEFITS. 

8 ‘‘PART I—DESIGNATION 

‘‘Sec. 1400V–1. Designation of Clean Energy Business Zones. 

9 ‘‘SEC. 1400V–1. DESIGNATION OF CLEAN ENERGY BUSINESS 

10 ZONES. 

11 ‘‘(a) IN GENERAL.—The Secretary may designate 40 

12 clean energy business zones. 

13 ‘‘(b) CONSULTATION.—In designating such zones, the 

14 Secretary shall consult with— 

15 ‘‘(1) the Secretary of Housing and Urban De16 velopment in the case of urban areas, and 

17 ‘‘(2) the Secretary of Agriculture in the case of 

18 rural areas. 

19 ‘‘(c) DESIGNATION CRITERIA.—In designating such 

20 zones, the Secretary shall consider the following factors: 

21 ‘‘(1) Whether the area already has a clean en22 ergy infrastructure or otherwise has a deteriorating 

23 conventional energy infrastructure. 


smartinez on DSKB9S0YB1PROD with BILLS
3 

•HR 1611 IH

1 ‘‘(2) Whether the area is reliant on carbon-in2 tensive industries and, consequently, job loss is an3 ticipated due to the transition to a clean energy 

4 economy. 

5 ‘‘(3) Whether the area is home to business sec6 tors that could complement new clean energy indus7 tries. 

8 ‘‘(4) Whether the area has other environmental 

9 or economic conditions conducive to the establish10 ment of facilities relating to the manufacture or re11 search of clean energy or clean energy technologies, 

12 including the components used in such manufacture 

13 or research and the production of clean energy. 

14 ‘‘(d) SIZE.—An area may be designated as a Clean 

15 Energy Business Zone only if it meets the requirements 

16 of section 1392(a)(3). 

17 ‘‘(e) PERIOD DESIGNATIONS MAY BE MADE.—A des18 ignation may be made under subsection (a) only after 

19 2011 and before 2014. 

20 ‘‘(f) PERIOD FOR WHICH DESIGNATION IS IN EF21 FECT.—Any designation under this section shall remain 

22 in effect during the period beginning on the date of the 

23 designation and ending on the close of the 10th calendar 

24 year beginning on or after such date of designation. 


smartinez on DSKB9S0YB1PROD with BILLS
4 

•HR 1611 IH

1 ‘‘PART II—TAX BENEFITS 

‘‘Sec. 1400V–2. Tax benefits for clean energy business zones. 

2 ‘‘SEC. 1400V–2. TAX BENEFITS FOR CLEAN ENERGY BUSI3 NESS ZONES. 

4 ‘‘(a) WAGE CREDIT.—For purposes of section 

5 1396— 

6 ‘‘(1) IN GENERAL.—Subject to the modifica7 tions in paragraph (2), a Clean Energy Business 

8 Zone shall be treated as an empowerment zone. 

9 ‘‘(2) MODIFICATIONS.—In applying section 

10 1396 with respect to Clean Energy Business 

11 Zones— 

12 ‘‘(A) IN GENERAL.—In the case of quali13 fied wages— 

14 ‘‘(i) subsection (b) thereof shall be ap15 plied by substituting ‘30 percent’ for ‘20 

16 percent’, and 

17 ‘‘(ii) subsection (c) thereof shall be 

18 applied by substituting ‘$20,000’ for 

19 ‘$15,000’ each place it appears. 

20 ‘‘(B) QUALIFIED WAGES.—For purposes of 

21 subparagraph (A), the term ‘qualified wages’ 

22 means qualified zone wages (as defined in sec23 tion 1396(c)) for services performed by the em24 ployee— 


smartinez on DSKB9S0YB1PROD with BILLS
5 

•HR 1611 IH

1 ‘‘(i) in the construction of any quali2 fied Green building, or 

3 ‘‘(ii) in any qualified clean energy fa4 cility. 

5 ‘‘(C) COORDINATION WITH BASIC CRED6 IT.—The $15,000 amount in section 1396(c)(2) 

7 (without regard to this subsection) shall be re8 duced for any calendar year by the amount of 

9 wages paid or incurred during such year which 

10 are taken into account in determining the credit 

11 under this subsection. 

12 ‘‘(3) CREDIT TO BE REFUNDABLE.—So much 

13 of the credit allowable by section 1396 solely by rea14 son of this subsection shall be treated as allowed 

15 under subpart C of part IV of subchapter A of this 

16 chapter. 

17 ‘‘(b) EXPANSION OF WORK OPPORTUNITY CREDIT.— 

18 ‘‘(1) IN GENERAL.—For purposes of section 51, 

19 a Clean Energy Business Zone employee shall be 

20 treated as a member of a targeted group. 

21 ‘‘(2) CLEAN ENERGY BUSINESS ZONE BUSINESS

22 EMPLOYEE.—For purposes of this subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘Clean En24 ergy Business Zone employee’ means, with reVerDate Mar 15 2010 23:36 Apr 20, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1611.IH H1611

smartinez on DSKB9S0YB1PROD with BILLS
6 

•HR 1611 IH

1 spect to any period, any employee of a Clean 

2 Energy Business Zone business if— 

3 ‘‘(i) the principal place of abode of 

4 such employee during such period is within 

5 a Clean Energy Business Zone, 

6 ‘‘(ii) substantially all the services per7 formed during such period by such em8 ployee for such business are performed— 

9 ‘‘(I) in the construction of any 

10 qualified Green energy building, or 

11 ‘‘(II) in a qualified clean energy 

12 facility, and 

13 ‘‘(iii) such employee had been em14 ployed in a carbon-intensive business at 

15 any time during the 1-year period ending 

16 on the date that the individual was first 

17 hired by the employer. 

18 ‘‘(B) CLEAN ENERGY BUSINESS ZONE

19 BUSINESS.—The term ‘Clean Energy Business 

20 Zone business’ means any trade or business— 

21 ‘‘(i) which is located in a Clean En22 ergy Business Zone, and 

23 ‘‘(ii) at least 15 percent of the em24 ployees of which are residents of a Clean 

25 Energy Business Zone. 


smartinez on DSKB9S0YB1PROD with BILLS
7 

•HR 1611 IH

1 ‘‘(C) SPECIAL RULES FOR DETERMINING

2 AMOUNT OF CREDIT.—For purposes of applying 

3 subpart F of part IV of subchapter A of this 

4 chapter to wages paid or incurred to any Clean 

5 Energy Business Zone business employee— 

6 ‘‘(i) subsections (c)(4) and (i)(2) of 

7 section 51 shall not apply, and 

8 ‘‘(ii) in determining qualified wages, 

9 the following shall apply in lieu of section 

10 51(b): 

11 ‘‘(I) QUALIFIED WAGES.—The 

12 term ‘qualified wages’ means wages 

13 paid or incurred by the employer to 

14 individuals who are Clean Energy 

15 Business Zone business employees of 

16 such employer for work performed 

17 during calendar year 2012. 

18 ‘‘(II) ONLY FIRST $12,000 OF

19 WAGES PER CALENDAR YEAR TAKEN

20 INTO ACCOUNT.—The amount of the 

21 qualified wages which may be taken 

22 into account with respect to any indi23 vidual shall not exceed $12,000 per 

24 calendar year. 

25 ‘‘(c) CLEAN RENEWABLE ENERGY BONDS.— 


smartinez on DSKB9S0YB1PROD with BILLS
8 

•HR 1611 IH

1 ‘‘(1) IN GENERAL.—For purposes of section 

2 54(c)(2), the term ‘qualified facility’ includes— 

3 ‘‘(A) any qualified Green building, and 

4 ‘‘(B) any qualified clean energy facility. 

5 ‘‘(2) EXTENSION.—In the case of bonds which 

6 are clean renewable energy bonds under section 54 

7 solely by reason of this subsection, section 54(m) 

8 shall be applied by substituting ‘December 31, 2022’ 

9 for ‘December 31, 2009’. 

10 ‘‘(d) INCREASED EXPENSING UNDER SECTION

11 179.— 

12 ‘‘(1) IN GENERAL.—For purposes of section 

13 179, the dollar amount in effect under section 

14 179(b)(1) for the taxable year shall be increased by 

15 the lesser of— 

16 ‘‘(A) $250,000, or 

17 ‘‘(B) the cost of qualified section 179 

18 Clean Energy Business Zone property placed in 

19 service during the taxable year. 

20 ‘‘(2) QUALIFIED SECTION 179 CLEAN ENERGY

21 BUSINESS ZONE PROPERTY.—For purposes of this 

22 subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘qualified 

24 section 179 Clean Energy Business Zone propVerDate Mar 15 2010 23:36 Apr 20, 2011 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1611.IH H1611

smartinez on DSKB9S0YB1PROD with BILLS
9 

•HR 1611 IH

1 erty’ means section 179 property (as defined in 

2 section 179(d))— 

3 ‘‘(i) which is described in section 

4 168(k)(2)(A)(i) or which is nonresidential 

5 real property or residential rental property, 

6 ‘‘(ii) substantially all of the use of 

7 which is in— 

8 ‘‘(I) a qualified Green building or 

9 a qualified clean energy facility, and 

10 ‘‘(II) the active conduct of a 

11 trade or business by the taxpayer in 

12 such Zone, 

13 ‘‘(iii) the original use of which in the 

14 Clean Energy Business Zone commences 

15 with the taxpayer on or after the date of 

16 the enactment of this section, 

17 ‘‘(iv) which is acquired by the tax18 payer by purchase (as defined in section 

19 179(d)) on or after such date, but only if 

20 no written binding contract for the acquisi21 tion was in effect before such date, and 

22 ‘‘(v) which is placed in service by the 

23 taxpayer during the 2-year period begin24 ning on such date (during the 3-year pe25 riod beginning on such date, in the case of 


smartinez on DSKB9S0YB1PROD with BILLS
10 

•HR 1611 IH

1 nonresidential real property and residential 

2 rental property). 

3 ‘‘(B) EXCEPTIONS.— 

4 ‘‘(i) ALTERNATIVE DEPRECIATION

5 PROPERTY.—Such term shall not include 

6 any property described in section 

7 168(k)(2)(D)(i). 

8 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

9 PROPERTY.—Such term shall not include 

10 any property any portion of which is fi11 nanced with the proceeds of any obligation 

12 the interest on which is exempt from tax 

13 under section 103. 

14 ‘‘(iii) ELECTION OUT.—If a taxpayer 

15 makes an election under this clause with 

16 respect to any class of property for any 

17 taxable year, this subsection shall not 

18 apply to all property in such class placed 

19 in service during such taxable year. 

20 ‘‘(3) SPECIAL RULES.—For purposes of this 

21 subsection, rules similar to the rules of subpara22 graph (E) of section 168(k)(2) shall apply, except 

23 that such subparagraph shall be applied— 

24 ‘‘(A) without regard to ‘and before Janu25 ary 1, 2013’ in clause (i) thereof, and 


smartinez on DSKB9S0YB1PROD with BILLS
11 

•HR 1611 IH

1 ‘‘(B) by substituting ‘qualified Clean En2 ergy Business Zone property’ for ‘qualified 

3 property’ in clause (iv) thereof. 

4 ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN5 IMUM TAX.—For purposes of this subsection, rules 

6 similar to the rules of section 168(k)(2)(G) shall 

7 apply. 

8 ‘‘(5) RECAPTURE.—For purposes of this sub9 section, rules similar to the rules under section 

10 179(d)(10) shall apply with respect to any qualified 

11 section 179 Clean Energy Business Zone property 

12 which ceases to be qualified section 179 Clean En13 ergy Business Zone property. 

14 ‘‘(e) EXCLUSION OF CAPITAL GAIN ON STOCK IN

15 QUALIFIED BUSINESSES.— 

16 ‘‘(1) IN GENERAL.—Gross income shall not in17 clude qualified capital gain from the sale or ex18 change of any Clean Energy Business Zone asset 

19 held for more than 5 years. 

20 ‘‘(2) CLEAN ENERGY BUSINESS ZONE ASSET.— 

21 For purposes of this subsection— 

22 ‘‘(A) IN GENERAL.—The term ‘Clean En23 ergy Business Zone asset’ means— 

24 ‘‘(i) any Clean Energy Business Zone 

25 business stock, 


smartinez on DSKB9S0YB1PROD with BILLS
12 

•HR 1611 IH

1 ‘‘(ii) any Clean Energy Business Zone 

2 partnership interest, and 

3 ‘‘(iii) any Clean Energy Business 

4 Zone business property. 

5 ‘‘(B) CLEAN ENERGY BUSINESS ZONE

6 BUSINESS STOCK.— 

7 ‘‘(i) IN GENERAL.—The term ‘Clean 

8 Energy Business Zone business stock’ 

9 means any stock in a domestic corporation 

10 which is originally issued after the date of 

11 the enactment of this section if— 

12 ‘‘(I) such stock is acquired by the 

13 taxpayer, before January 1, 2015, at 

14 its original issue (directly or through 

15 an underwriter) solely in exchange for 

16 cash, 

17 ‘‘(II) as of the time such stock 

18 was issued, such corporation was a 

19 Clean Energy Business Zone business 

20 (or, in the case of a new corporation, 

21 such corporation was being organized 

22 for purposes of being a Clean Energy 

23 Business Zone business), and 

24 ‘‘(III) during substantially all of 

25 the taxpayer’s holding period for such 


smartinez on DSKB9S0YB1PROD with BILLS
13 

•HR 1611 IH

1 stock, such corporation qualified as a 

2 Clean Energy Business Zone business. 

3 ‘‘(ii) REDEMPTIONS.—A rule similar 

4 to the rule of section 1202(c)(3) shall 

5 apply for purposes of this paragraph. 

6 ‘‘(C) CLEAN ENERGY BUSINESS ZONE

7 PARTNERSHIP INTEREST.—The term ‘Clean 

8 Energy Business Zone partnership interest’ 

9 means any capital or profits interest in a do10 mestic partnership which is originally issued 

11 after the date of the enactment of this section 

12 if— 

13 ‘‘(i) such interest is acquired by the 

14 taxpayer, before January 1, 2015, from 

15 the partnership solely in exchange for cash, 

16 ‘‘(ii) as of the time such interest was 

17 acquired, such partnership was a Clean 

18 Energy Business Zone business (or, in the 

19 case of a new partnership, such partner20 ship was being organized for purposes of 

21 being a Clean Energy Business Zone busi22 ness), and 

23 ‘‘(iii) during substantially all of the 

24 taxpayer’s holding period for such interest, 


smartinez on DSKB9S0YB1PROD with BILLS
14 

•HR 1611 IH

1 such partnership qualified as a Clean En2 ergy Business Zone business. 

3 A rule similar to the rule of subparagraph 

4 (B)(ii) shall apply for purposes of this subpara5 graph. 

6 ‘‘(D) CLEAN ENERGY BUSINESS ZONE

7 BUSINESS PROPERTY.— 

8 ‘‘(i) IN GENERAL.—The term ‘Clean 

9 Energy Business Zone business property’ 

10 means property which is a qualified Green 

11 building if— 

12 ‘‘(I) such property was acquired 

13 by the taxpayer by purchase (as de14 fined in section 179(d)(2)) after the 

15 date of the enactment of this section 

16 and before January 1, 2015, 

17 ‘‘(II) the original use of such 

18 property in the Clean Energy Busi19 ness Zone commences with the tax20 payer, and 

21 ‘‘(III) during substantially all of 

22 the taxpayer’s holding period for such 

23 property, substantially all of the use 

24 of such property was in a Clean EnVerDate Mar 15 2010 23:36 Apr 20, 2011 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1611.IH H1611

smartinez on DSKB9S0YB1PROD with BILLS
15 

•HR 1611 IH

1 ergy Business Zone business of the 

2 taxpayer. 

3 ‘‘(ii) SPECIAL RULE FOR BUILDINGS

4 WHICH ARE SUBSTANTIALLY IMPROVED.— 

5 ‘‘(I) IN GENERAL.—The require6 ments of subclauses (I) and (II) of 

7 clause (i) shall be treated as met with 

8 respect to— 

9 ‘‘(aa) property which is sub10 stantially improved by the tax11 payer before January 1, 2015, 

12 and 

13 ‘‘(bb) any land on which 

14 such property is located. 

15 ‘‘(II) SUBSTANTIAL IMPROVE16 MENT.—For purposes of subclause 

17 (I), property shall be treated as sub18 stantially improved by the taxpayer 

19 only if, during any 24-month period 

20 beginning after December 31, 1999, 

21 additions to basis with respect to such 

22 property in the hands of the taxpayer 

23 exceed the greater of $5,000 or an 

24 amount equal to the adjusted basis of 

25 such property at the beginning of 


smartinez on DSKB9S0YB1PROD with BILLS
16 

•HR 1611 IH

1 such 24-month period in the hands of 

2 the taxpayer. 

3 ‘‘(E) TREATMENT OF CLEAN ENERGY

4 BUSINESS ZONE TERMINATION.—The termi5 nation of the designation of the Clean Energy 

6 Business Zone shall be disregarded for purposes 

7 of determining whether any property is a Clean 

8 Energy Business Zone asset. 

9 ‘‘(F) TREATMENT OF SUBSEQUENT PUR10 CHASERS, ETC.—The term ‘Clean Energy Busi11 ness Zone asset’ includes any property which 

12 would be a Clean Energy Business Zone asset 

13 but for subparagraph (B)(i)(I), (C)(i), or (D)(i) 

14 (I) or (II) in the hands of the taxpayer if such 

15 property was a Clean Energy Business Zone 

16 asset in the hands of a prior holder. 

17 ‘‘(G) 5-YEAR SAFE HARBOR.—If any prop18 erty ceases to be a Clean Energy Business Zone 

19 asset by reason of subparagraph (B)(i)(III), 

20 (C)(iii), or (D)(i)(III) after the 5-year period 

21 beginning on the date the taxpayer acquired 

22 such property, such property shall continue to 

23 be treated as meeting the requirements of such 

24 paragraph; except that the amount of gain to 

25 which paragraph (1) applies on any sale or exVerDate Mar 15 2010 23:36 Apr 20, 2011 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1611.IH H1611

smartinez on DSKB9S0YB1PROD with BILLS
17 

•HR 1611 IH

1 change of such property shall not exceed the 

2 amount which would be qualified capital gain 

3 had such property been sold on the date of such 

4 cessation. 

5 ‘‘(3) CLEAN ENERGY BUSINESS ZONE BUSI6 NESS.—For purposes of this subsection, the term 

7 ‘Clean Energy Business Zone business’ means any 

8 trade or business if— 

9 ‘‘(A) all buildings located in any Clean En10 ergy Business Zone which are owned or occu11 pied by such trade or business are qualified 

12 Green buildings or qualified clean energy facili13 ties, and 

14 ‘‘(B) such business would be an enterprise 

15 zone business (as defined in section 1397C) de16 termined— 

17 ‘‘(i) by substituting ‘80 percent’ for 

18 ‘50 percent’ in subsections (b)(2) and 

19 (c)(1) of section 1397C, 

20 ‘‘(ii) by substituting ‘15 percent’ for 

21 ‘35 percent’ in subsections (b)(6) and 

22 (c)(5) of section 1397C, and 

23 ‘‘(iii) by treating no area other than 

24 the Clean Energy Business Zone as an em25 powerment zone or enterprise community. 


smartinez on DSKB9S0YB1PROD with BILLS
18 

•HR 1611 IH

1 ‘‘(4) OTHER DEFINITIONS AND SPECIAL

2 RULES.— 

3 ‘‘(A) QUALIFIED CAPITAL GAIN.—Except 

4 as otherwise provided in this paragraph, the 

5 term ‘qualified capital gain’ means any gain 

6 recognized on the sale or exchange of— 

7 ‘‘(i) a capital asset, or 

8 ‘‘(ii) property used in the trade or 

9 business (as defined in section 1231(b)). 

10 ‘‘(B) GAIN BEFORE ENACTMENT OR AFTER

11 2014 NOT QUALIFIED.—The term ‘qualified cap12 ital gain’ shall not include any gain attributable 

13 to periods before the date of the enactment of 

14 this section or after December 31, 2014. 

15 ‘‘(C) CERTAIN GAIN NOT QUALIFIED.—The 

16 term ‘qualified capital gain’ shall not include 

17 any gain which would be treated as ordinary in18 come under section 1245 or under section 1250 

19 if section 1250 applied to all depreciation rath20 er than the additional depreciation. 

21 ‘‘(D) INTANGIBLES AND LAND NOT INTE22 GRAL PART OF CLEAN ENERGY BUSINESS ZONE

23 BUSINESS.—The term ‘qualified capital gain’ 

24 shall not include any gain which is attributable 

25 to real property, or an intangible asset, which 


smartinez on DSKB9S0YB1PROD with BILLS
19 

•HR 1611 IH

1 is not an integral part of a Clean Energy Busi2 ness Zone business. 

3 ‘‘(E) RELATED PARTY TRANSACTIONS.— 

4 The term ‘qualified capital gain’ shall not in5 clude any gain attributable, directly or indi6 rectly, in whole or in part, to a transaction with 

7 a related person. For purposes of this para8 graph, persons are related to each other if such 

9 persons are described in section 267(b) or 

10 707(b)(1). 

11 ‘‘(5) CERTAIN RULES TO APPLY.—Rules similar 

12 to the rules of subsections (g), (h), (i)(2), and (j) of 

13 section 1202 shall apply for purposes of this sub14 section. 

15 ‘‘(6) SALES AND EXCHANGES OF INTERESTS IN

16 PARTNERSHIPS AND S CORPORATIONS WHICH ARE

17 CLEAN ENERGY BUSINESS ZONE BUSINESSES.—In 

18 the case of the sale or exchange of an interest in a 

19 partnership, or of stock in an S corporation, which 

20 was a Clean Energy Business Zone business during 

21 substantially all of the period the taxpayer held such 

22 interest or stock, the amount of qualified capital 

23 gain shall be determined without regard to— 

24 ‘‘(A) any gain which is attributable to real 

25 property, or an intangible asset, which is not an 


smartinez on DSKB9S0YB1PROD with BILLS
20 

•HR 1611 IH

1 integral part of a Clean Energy Business Zone 

2 business, and 

3 ‘‘(B) any gain attributable to periods be4 fore the date of the enactment of this section or 

5 after December 31, 2014. 

6 ‘‘(f) EXPENSING OF PORTION OF COST OF QUALI7 FIED CLEAN ENERGY FACILITIES.— 

8 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

9 treat the cost of any qualified clean energy facility 

10 property as an expense which is not chargeable to 

11 capital account. Any cost so treated shall be allowed 

12 as a deduction for the taxable year in which the 

13 property is placed in service. 

14 ‘‘(2) MAXIMUM AMOUNT OF DEDUCTION.— 

15 ‘‘(A) IN GENERAL.—The deduction under 

16 paragraph (1) for any taxable year shall not ex17 ceed $1,000,000. 

18 ‘‘(B) DEDUCTION ALLOWED FOR ONLY 5

19 YEARS.—A deduction shall be allowed under 

20 this paragraph for any qualified clean energy 

21 facility property only for the taxable year dur22 ing which the qualified clean energy facility is 

23 placed in service and for the first 4 taxable 

24 years thereafter. 


smartinez on DSKB9S0YB1PROD with BILLS
21 

•HR 1611 IH

1 ‘‘(3) QUALIFIED CLEAN ENERGY FACILITY

2 PROPERTY.—For purposes of this subsection, the 

3 term ‘qualified clean energy facility property’ means 

4 any property— 

5 ‘‘(A) with respect to which depreciation (or 

6 amortization in lieu of depreciation) is allow7 able, and 

8 ‘‘(B) which is installed on or in any quali9 fied clean energy facility. 

10 ‘‘(4) BASIS REDUCTION.—For purposes of this 

11 subtitle, if a deduction is allowed under this sub12 section with respect to any qualified clean energy fa13 cility property, the basis of such property shall be 

14 reduced by the amount of the deduction so allowed. 

15 ‘‘(5) TERMINATION.—This subsection shall not 

16 apply to property placed in service after December 

17 31, 2014. 

18 ‘‘(g) DEFINITIONS.—For purposes of this section— 

19 ‘‘(1) QUALIFIED GREEN BUILDING.— 

20 ‘‘(A) IN GENERAL.—The term ‘qualified 

21 Green building’ means any building which is lo22 cated in a Clean Energy Business Zone and 

23 which meets the standards prescribed by the 

24 Administrator of the Environmental Protection 


smartinez on DSKB9S0YB1PROD with BILLS
22 

•HR 1611 IH

1 Agency under subparagraph (B) for such build2 ing. 

3 ‘‘(B) STANDARDS.—The Administrator of 

4 the Environmental Protection Agency shall de5 velop and implement, in consultation with the 

6 Secretary of Energy, standards for a national 

7 energy and environmental building retrofit pol8 icy for single-family and multifamily residences. 

9 The Administrator shall develop and implement, 

10 in consultation with the Secretary of Energy 

11 and the Director of Commercial High-Perform12 ance Green Buildings, standards for a national 

13 energy and environmental building retrofit pol14 icy for nonresidential buildings. The programs 

15 to implement the residential and nonresidential 

16 policies based on the standards developed under 

17 this subparagraph shall together be known as 

18 the Retrofit for Energy and Environmental 

19 Performance (REEP) program. 

20 ‘‘(2) QUALIFIED CLEAN ENERGY FACILITY.— 

21 The term ‘qualified clean energy facility’ means any 

22 facility which is located in a Clean Energy Business 

23 Zone and which relates to the manufacture or re24 search of clean energy or clean energy technologies, 


smartinez on DSKB9S0YB1PROD with BILLS
23 

•HR 1611 IH

1 including the components used in such manufacture 

2 or research and the production of clean energy.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sub4 chapters for chapter 1 of such Code is amended by adding 

5 at the end the following new item: 

‘‘SUBCHAPTER Z. CLEAN ENERGY BUSINESS ZONES.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years ending after the 

8 date of the enactment of this Act. 

9 SEC. 3. WAIVER OF SBA LOAN FEES. 

10 (a) SECTION 7(a) LOANS.—Paragraph (18) section 

11 7(a) of the Small Business Act is amended by adding at 

12 the end the following new subparagraph: 

13 ‘‘(C) NO FEE PERMITTED FOR CLEAN EN14 ERGY CONSTRUCTION LOANS.—No fee may be 

15 imposed under this paragraph with respect to 

16 any loan made before January 1, 2022, for the 

17 construction of any qualified Green building (as 

18 defined in section 1400V–2(g) of the Internal 

19 Revenue Code of 1986) or any qualified clean 

20 energy facility (as defined in such section).’’. 

21 (b) SECTION 504 LOANS.—Paragraph (2) of section 

22 503(d) of the Small Business Investment Act of 1958 is 

23 amended by adding at the end the following new sentence: 

24 ‘‘No fee may be imposed under this paragraph with re25 spect to any loan made before January 1, 2022, for the 


smartinez on DSKB9S0YB1PROD with BILLS
24 

•HR 1611 IH

1 construction of any qualified Green building (as defined 

2 in section 1400V–2(g) of the Internal Revenue Code of 

3 1986) or any qualified clean energy facility (as defined 

4 in such section).’’ 

Æ 


smartinez on DSKB9S0YB1PROD with BILLS